BLUE FUEL

June 2015/ Vol. 8/ Issue 3 BLUE FUEL

Gazprom Export Global Newsletter

June 2015/ Vol. 8/ Issue 3

Elena Burmistrova: Growth through

Diversification – Gazprom’s Asia Strategy
Page 5

Blue Corridor in the City of Lights

Page 7

Spyros Paleoyannis: Meeting Security of Supply

and Gas Market Integration Challenges
Page 9

Vojislav Vuletic: TurkStream and its

Significance for South Eastern Europe
Page 10

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© Gazprom Export

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© VD
BLUE FUEL
Gazprom Export Global Newsletter

2
 In this issue
June 2015/ Vol. 8/ Issue 3

To Our Readers............................................................................................... 4

Elena Burmistrova: Growth through Diversification –

Gazprom’s Asia Strategy ................................................................................ 5

Blue Corridor in the City of Lights.................................................................... 7

Gazprom Germania Acquires CNG Filling Stations in Baden-Wurttemberg .... 8

Spyros Paleoyannis: Meeting Security of Supply

and Gas Market Integration Challenges in South Eastern Europe:
The Role of Greece and DEPA.......................................................................... 9

Vojislav Vuletic: TurkStream and its Significance for

South Eastern Europe................................................................................... 10

Commemorating World War I........................................................................ 12

Russian-German Academy Orchestra Performs in

St. Petersburg and Berlin .............................................................................. 13

Gazprom & FC Schalke 04: Partners Through Thick and Thin........................ 14

SKA Wins 2015 Gagarin Cup ....................................................................... 16

FC Chelsea Legend Ferreira Coaches Kids in London..................................... 17

Publishers Contact Info:

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To Our Readers
In early June, the most important event in
the global gas industry, the International
Gas Union’s 26th World Gas Conference,
was held in Paris. For a week, all major
industry players gathered to exchange
their views about the new realities of the
gas and energy markets and the outlook
for the future.
The meeting took place at a crucial
time for the gas industry, being a prelude
to the most highly anticipated climate
summit in recent times, COP21 in Paris
in December. Therefore, climate change
naturally was on top of the agenda. No
less important was the forecast of the
structure of future energy demand and
the role of natural gas. The IEA Global
Energy Outlook, published during the
event, sees Europe face declining
domestic production and moderate
recovery in demand that would raise
imports by one third in the next five years,
with Russian gas supplies remaining at
the same level. The long-term outlook
for Asia became more uncertain due to
weaker gas demand and some countries
opting for coal-fired power generation.
Nevertheless, growing demand for energy
is certain, and climate change still poses
a serious challenge. The WGC stressed
again that natural gas is the solution of
choice to meet both challenges. Despite
the uncertainties, global gas demand is
going to grow by 2% per year until 2020.
LNG will become an even bigger story –
its production will gain new momentum,
thus not only shifting global gas flows, but
4
supporting demand and encouraging gas
use. Among other applications, gas has a
huge and promising potential as a motor
fuel and our special report on this year’s
“Blue Corridor” will give further insights
into this exciting chapter of the global
gas industry.
Natural gas is the best fuel to back
up renewable energy sources and
provide climate-friendly solutions at a
reasonable price. What is remarkable is
that all environmental benefits of gas - its
physics, abundance and sustainability -
are purely ‘natural,’ while its weaknesses
are manmade, like subsidies for
renewable energy or the comeback of
dirty coal in power generation. It makes
no sense to fight what is natural, but
there is a strong economic and ecological
rationale to address any artificial market
distortion and bias.
The promised ‘Golden Age’ of natural gas
is not likely to arrive all by itself. While
there is no ground to be extra optimistic,
there is a firm reason to be realistic and
exert additional efforts to make it a reality.
“The time for action is now,” outgoing IGU
President Jérôme Ferrier said. ”We are
uniquely positioned to face the challenges
and overcome them.” Keeping all this
in mind, gas industry majors brought
together by the WGC have shown the
willpower to work together and ensure
that gas maintains and extends its place
and role in the global energy mix.
June 2015/ Vol. 8/ Issue 3
Growth through Diversification – Gazprom’s Asia Strategy
Elena V. Burmistrova,
Director General of
Gazprom Export
While Europe is and will
be Gazprom’s top export
market, it is Asia where
we see the potential
for the future growth of
our company. It is this
region that has been
and will be the driver of
new business opportunities for Gazprom, new opportunities for
growth and diversification.
The Asia-Pacific region is set to continue driving global demand
growth for natural gas. Of course we should take into account
the changing economic performance of the regional leaders,
but the region’s thirst for natural gas is still expected to generate
half of the global growth of gas consumption. This demand for
natural gas also very clearly reflects the benefits of the fuel for
increasing energy efficiency, solving environmental problems
that many countries of the region face and underpins the
potential that the Asian market offers for Gazprom.
A large part of the very tangible reality of our future growth in
Asia is a deal that I had the privilege to be personally involved in.
Last year, Gazprom and China National Petroleum Corporation
signed a historic thirty-year contract for Russian pipeline gas
deliveries to China. Over a trillion cubic meters of gas will be
supplied under this long-term agreement through an Eastern
route, part of the Power of Siberia gas transmission system.
Furthermore, in November 2014, Gazprom and CNPC also
signed a Framework Agreement on additional volumes of
gas supply to China via a Western route, the Altai project. On
May 8, 2015 the Heads of Agreement for pipeline gas supply
from Russia to China via the Western route were inked in the
presence of Russian President Vladimir Putin and Chinese
President Xi Jinping. The document outlines the main technical
and commercial parameters of the future supplies. Negotiations
for a Purchase and Sale Agreement for Russian gas supply via
a Western route are in progress and, of course, it will require
some time, which is only natural when the details of such a big
contract are being agreed upon.
Our agreements with Chinese partners are a momentous
milestone in Gazprom’s history and open up an entirely
new market.
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BLUE FUEL
But these deals are only one part of the natural continuation of
Gazprom’s geographic expansion and diversification strategy
– a strategy that has been in place for a number of years and
is driven by the very principle of supply and demand. The
expansion of our business in the Asia-Pacific region has been a
long-term policy and is by no means a short-term reaction to a
drastically changed environment.
Through our Eastern Gas Program we are establishing an
integrated gas production, transportation and supply system
in Eastern Siberia and Russia’s Far East that is focused on
expanding deliveries to our Asia-Pacific clients, be it via pipeline
or in form of LNG cargoes.
The construction of the Power of Siberia gas transmission
system – which will bring Russian natural gas to China – and the
development of the Chayandinskoye gas field in Yakutia, which
at the first stage will become the main production base for these
supplies, have already started and are going to be finished
within the planned period.
Complementing our pipeline projects, Gazprom is also planning
to significantly enhance our LNG production and trading
operations. Our LNG projects in the Far East of Russia, the
Vladivostok LNG project as well as the construction of a third
train of the Sakhalin-2 LNG plant, are targeting our traditional
customers in North East Asia as well as those in newly emerging
South East Asian markets. The progress of the projects’
implementation will be closely linked to the developments of the
Asian LNG market, which has changed dramatically during the
last year.
Gazprom’s LNG projects
* Operated by Sakhalin Energy – Gazprom associated company
Continues on page 6
5
Already today we supply liquefied
natural gas to the Asia-Pacific region. It
is Singapore in particular that has been
one of the main pillars of Gazprom’s
ambitions and its success in the Asian
market. Our subsidiary Gazprom
Marketing & Trading Singapore has
grown significantly since it opened in
December 2009, focusing particularly on
marketing and trading of LNG. In 2014
alone, Gazprom Marketing & Trading
delivered 52 LNG cargoes, primarily to
Asian customers.
Also, Gazprom has recently agreed a
twenty-year contract with Yamal LNG
which provides for the annual supply
of 2.9 million tons of LNG that will be
delivered to the Asia-Pacific markets,
primarily to India.
While there is a growing demand for spot,
uncontracted LNG, long-term supply
contracts remain the cornerstone of
energy security in Asia. The long-term
contracts with oil-indexation are essential
to the gas industry, as they make the
market predictable, and gas supplies
and trade reliable, benefitting both
sides of the equation. We don’t expect
a fundamental erosion of the existing
pricing paradigm in the Asian LNG
market, but a smooth transformation to a
hybrid pricing model, where oil-indexed
long-term contracts set the baseline
trend for hub prices while supply and
demand only modulates their behavior.
The global LNG market also very much
depends on the availability of shipping
capacity, that is why our own tanker fleet
gives a huge advantage to Gazprom in
the LNG market. In 2014, we had two
newly built LNG carriers added to our
fleet – the Velikiy Novgorod and the Pskov.
These state of the art vessels join a small
group of LNG carriers with Ice Class
strengthened hulls and winterization
equipment to allow them to operate in
6
harsh climatic conditions and sub-zero
temperatures all year round. This makes
them capable of transporting LNG from
any existing LNG terminal as well as
able to transit the Northern Sea Route if
required.
Our diversification is not only one of
regional nature, but also one that sits
across the value chain, with liquids
proving to be an extremely solid source
of growth. Gas condensate production
has doubled in a very short space of
time and oil production continues to
add to a robust revenue stream, also in
Asia Pacific.
Meanwhile, the use of natural gas in the
transport industry is another emerging
bright spot for demand growth. Asia is
already leading in the global consumption
of gas in transport and will do so in the
long-term thanks to the environmental
and economic benefits of natural gas.
In this demand driven environment,
our vast resource base as well as our
experience and expertise in transmission
and delivery infrastructure clearly
translate into crucial security of supply for
all of Gazprom’s customers.
With more than four decades experience
as a stable, yet flexible long-term supplier
of pipeline gas to Europe, as a pioneer in
Russian LNG exports and thanks to the
simple geographic proximity we have an
exclusive competitive advantage to be
the supplier of choice in a region, where
premium prices lure suppliers from
across the globe.
Following its Eurasian nature Russia
never has its eyes only on the West. This
holds true for Gazprom – as a global
company we always strive for regional
diversification. And Asia always was,
is and will be an essential part of our
primary business interests.
June 2015/ Vol. 8/ Issue 3
Blue Corridor in the City of Lights
For the ninth time already, on May 24th 2015, the Blue Corridor
natural gas vehicle (NGV) rally, organized by Gazprom Export
and E.ON to promote the use of natural gas as a motor fuel, hit
the road from Russia. Vehicles and drivers from Moscow, St.
Petersburg, Naberezhnye Chelny, Milan, Leipzig and Potsdam
joined the race.
© VD
From left: Jérôme Ferrier, Alexander Medvedev and Christopher
Delbrück applying Blue Corridor logos to a rally car
Belarus and Poland, where the rally drove through after leaving
Russia, are considered very promising markets for the use of
gas as a motor fuel. Belarus is considered to be a growing NGV
market, with currently 4600 natural gas vehicles and 42 CNG
filling stations. Poland’s natural gas motor fuel market also
demonstrates strong growth: today 3590 NGVs drive the roads
of this Eastern European country. To fuel this fleet, 88 natural gas
filling stations are being operated today, 87% more than in 2013,
and 52 more are currently planned for construction.
An important milestone during the Blue Corridor rally was the
stop at local transport company MZA in Warsaw. Here, at the
Ostrobramska bus depot, Gazprom Germania is currently
building Gazprom Group’s first ever combined filling station for
liquefied and liquefied-to-compressed natural gas (LCNG station)
in Europe.
Gazprom Germania, in cooperation with Polish bus manufacturer
Solbus and its distribution partner Lider Trading, have recently
been awarded the contract to provide 35 LNG city buses for the
Polish capital. Two mobile LNG filling stations have been fueling
these buses since January 2015. Soon, the stationary facility, with
two 60 m3 LNG tanks, each 15 metres tall, will add even more
security, stability and innovation to the fueling process.
After Warsaw, the rally entered Germany, which is already one of
the most advanced countries in Europe in terms of natural gas
mobility. A network of more than 900 natural gas stations spreads
across the country, fueling around 96,000 gas-powered vehicles.
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BLUE FUEL
The rally also made two brief stops in Amsterdam and Brussels.
Finally, having driven 3790 km along the motorways of Belarus,
Poland, Germany, the Netherlands and Belgium, Blue Corridor
crossed the finish line in France, arriving at this year’s key event –
the 26th World Gas Conference in Paris.
Blue Corridor is not new to the French capital, with the last
visit dating back to 2012, but it is the first time it received such
a cordial welcome and was honoured to participate at the
World Gas Conference, which brings together leading industry
representative and high-level policy-makers. The rally’s welcome
ceremony was hosted by International Gas Union President
Jérôme Ferrier, Gazprom Deputy Chairman of the Management
Committee Alexander Medvedev and E.ON Global Commodities
CEO Christopher Delbrück. The speakers discussed their views
on the use of gas in transport, underlining its role in reducing CO2
emissions and combating climate change.
“There is tremendous potential for the European NGV market
to grow,” Alexander Medvedev stated. “The Blue Corridor Rally
demonstrates concrete progress towards increasing the role of
gas in transport.”
Jérôme Ferrier welcomed the Rally as a great opportunity,
adding how he viewed the future for NGVs as bright. Christopher
Delbrück argued there is growth potential in the gas market,
leading to businesses successfully working together. Other
speakers also noted the value of gas as a motor fuel in combating
urban pollution, calling gas in transport the last frontier to conquer.
Later this year France will also preside over the UN Climate
Change Summit, thus making 2015 truly a year of promoting clean
energy sources. The Blue Corridor rally is a successful example of
great team work aimed at reducing emissions and explaining the
benefits of using of natural gas in transport.
© VD
Eugene Pronin (Gazprom Export) and Andre Schumann (E.On)
at the NGV pavilion
Continues on page 8
7
The second event on its Parisian agenda
was the Blue Corridor Rally Presentation
at the NGV Village, a special venue for
natural gas and automobile experts.
Along with presentations on opportunities
offered by natural gas vehicles and the use
of gas in transport, the rally represented
a great variety of available vehicles - a
VW Passat, an Audi A3 g-tron, a Scirocco
Racing VW, a Solcity 12 LNG city bus, an
Opel Zafira, a Fiat Ducato, and a FIAT-500,
demonstrating the versatility of vehicles
and applications.
The glorious City of Lights and global
gas capital, Paris was truly the highlight
of the rally. On its return journey the
convoy also stopped in Leipzig, Germany,
for an expert discussion. On 11 June
rally participants successfully arrived in
Russia, leaving behind almost 7000 km
of Russian, Belorussian, Latvian, Polish,
German, Dutch, Belgian and French roads
and European markets that increasingly
Gazprom Germania Acquires CNG
Filling Stations in Baden-Wurttemberg
Gazprom Germania, Gazprom Export’s
subsidiary, has expanded its network
of natural gas filling stations. Gazprom
Germania and German utility EnBW
Energie Baden-Württemberg (EnBW)
signed an agreement on 24 April
2015 that will see Gazprom Germania
acquire four natural gas filling stations in
Stuttgart and Nagold from EnBW as of 1
May 2015.
“With this acquisition we’re advancing
the expansion of our network of natural
gas filling stations in Germany, and, for
the first time, contributing to making
mobility in Baden-Württemberg more
environmentally friendly,” said Timo
Vehrs, Director of Business Development
at Gazprom Germania. The acquisition
will bring the number of natural gas filling
stations Gazprom Germania operates
in Germany to 28. Gazprom Germania
8
welcome gas as the new, innovative and
efficient motor fuel.
“The history of the Blue Corridor rally is
genuinely a story of success. For nearly
a decade, rally vehicles have comfortably
and economically driven almost the
length of the Equator without facing any
accidents. There could not be better proof
of the safety and affordability of NGV-
technology. We are absolutely confident
that one day Blue Corridor will move to
a global stage. New countries and even
entire continents are now starting to value
the benefits of natural gas and will join this
initiative. The increased use of natural gas
in transport will be a tangible contribution
to the green and prosperous world of the
future,” said Eugene Pronin, Founder of
the Blue Corridor Rally.
For more information about the 2015 rally
please visit www.bluecorridor.org
plans to be running 35 stations by the
end of 2015.
“We’re very happy to have found a
reliable partner in Gazprom Germania
that will keep serving our customers and
keep the stations operating in the long
term,” said Volkmar Langefeld, Group
Expert for Gas at EnBW.
Natural gas is becoming increasingly
important as a fuel for motor vehicles.
There are almost 100,000 natural gas
vehicles registered in Germany, and
that number is increasing. Last year,
Germany’s Federal Motor Transport
Authority registered over 9,100 new
natural gas powered commercial
vehicles and cars – 2.3 % more than in
the previous year.
June 2015/ Vol. 8/ Issue 3
Meeting Security of Supply and Gas Market Integration
Challenges in South Eastern Europe: The Role of Greece
and DEPA
By Spyros Paleoyannis, CEO, Public
Gas Corporation of Greece (DEPA)
SA and a Member of Management
Committee at International Group
of Liquefied Natural Gas Importers
(GIIGNL)
There is no doubt that during the last years, South Eastern
Europe has been at the center of European and international
interest, mainly because of the ongoing developments in the
energy sector.
Due to the proximity of the region to both traditional and
alternative gas sources, nearly all gas transport routes to
Europe, either under construction or under development,
include many of the region’s countries, and thus there is a
strong possibility for one or two of them to become new gas
hubs and/or gas gateways to Europe in the future.
From a purely geographical point of view, Turkey and Greece
certainly have an advantage in such a scenario.
South Eastern Europe, as a significant energy consuming part
of Europe, faces a number of realities and challenges as regards
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BLUE FUEL
its future needs for natural gas, mainly connected with the
supply-demand equation, energy security and sustainability, but
also its market characteristics and vulnerabilities.
The adjacent countries of South Eastern Europe recognize the
benefits of developing a strong base of interconnected gas
infrastructure, thus establishing a regional energy integration
that actually contributes to the enforcement of a European
energy market. Momentum is building for South Eastern Europe
to move into that direction.
However, despite the efforts to create a secure and competitive
energy market in the region, gas markets still remain national,
with little integration, limited cross border gas flows and trade
and with no gas-to-gas competition at all, mainly due to the
lack of sufficient gas interconnectors, LNG and UGS facilities.
To complete the picture, the region is facing declining local gas
production and high dependence on a single gas importer.
The above mentioned vulnerabilities have become more
obvious in the course of the last years due to the consecutive
crises in Ukraine, during which (especially the one in 2009) the
interruption of Russian gas deliveries was extremely painful for a
number of South Eastern European countries.
Continues on page 10
9
Nevertheless, due to low energy demand
per capita and poor gasification status
in many countries in the region, in the
Balkans there is the potential for an
increase of gas consumption in the
future and thus South Eastern Europe
represents an attractive market for both
traditional and alternative gas suppliers.
This reality also explains the intense
and very often geopolitical competition
between powerful players in the
international arena.
In this environment, there are two
significant gas transport projects
currently under construction with pivotal
strategic importance to South Eastern
Europe:
• The Southern Corridor, dedicated to
transport Azeri Gas to Europe and
• The TurkStream/Greek Stream,
designed to transport Russian gas via
Greece to Europe
The Southern Corridor is fully backed
by the EU and US, with the Americans
strongly opposing the second pipeline
(TurkStream), simply because it is going
to transport Russian gas.
TurkStream and its Significance
for South Eastern Europe
Dr. Eng.
Vojislav
Vuletić,
President
of the
Assembly,
Gas
Association
of Serbia
South Eastern European countries are
energy-poor. They do not have sufficient
quantities of oil and natural gas for their
own needs, so they must import them.
So far, natural gas has been imported
from the Russian Federation.
Development of these countries’
10
Geopolitical competition aimed at
increasing influence and control over gas
sources, transport routes and markets is,
of course, understandable.
However, from a regional gas consumer
point of view, this competition has only
limited meaning. The real interest and
concern of the countries in South Eastern
Europe is for each country to have at least
three supply sources and transport routes
available in order to enjoy a diverse gas
supply portfolio (especially if it includes
both pipeline gas and LNG) and thus
an acceptable level of energy security.
Moreover, with more than one supply
option, gas consumers in the region
would enjoy lower gas prices due to gas-
to-gas competition in the regional market.
Greece has a realistic national energy
strategy which also involves a regional
dimension. This strategy is aimed at
enhancing the country’s and the region’s
energy security by diversifying gas
supply sources and also by supporting
any possible gas transport route to or
through South Eastern Europe, as well
as any available gas flows that may
reach the region.
economies and their energy needs is
based on the import of natural gas.
Gas transportation systems in Serbia,
Bulgaria, Macedonia and Bosnia-
Herzegovina were designed for supplies
from one direction only, which is not
ideal from the point of view of safety
and reliability of the system, as any
malfunction on such single-leg pipelines
can leave all consumers down the
line without gas. Delivery from several
directions, at least two, largely resolves
the issue of safe and reliable supplies.
Continues on page 11
June 2015/ Vol. 8/ Issue 3
TurkStream. Source: Gazprom
The South Stream project envisaged supply for the
aforementioned countries from another direction, and it was
designed to meet their needs for natural gas until 2050. With
the obstruction by the European Commission and ultimate
cancellation of South Steam, these countries were put into a
rather difficult situation.
The Russian Federation and Turkey have now agreed to
construct TurkStream instead of South Stream, bypassing
Bulgaria which also obstructed the construction of the latter.
At the Turkish-Greek border TurkStream will offer Europe the
quantities originally envisaged by the South Stream project. That
way, the problem of adherence to the Third Energy Package,
which the EC insisted upon, will be left for Europe to resolve.
South Eastern European countries do not have the funds for
construction of the onshore pipelines which would be connected
to TurkStream, so they would need to be funded by the EU.
These countries need natural gas for production of electricity,
as they are currently experiencing a power generation deficit
and are forced to import power. Besides, in the near future,
Bulgaria will face a shut-down of its aged nuclear power plants,
and the same is valid for other countries’ thermal power plants
running on coal which are approaching the end of their life
cycle. Construction of thermal power plants with combined
gas-steam cycle and cogeneration enables attaining very high
levels of primary energy efficiency which is very important
for gas-importing countries, as they need to spend less on
gas import. Strong pressure for reduction of greenhouse gas
emissions which contribute to global warming also force us to
progressively reduce consumption of coal and oil. Natural gas
can entirely satisfy the CO2 emission standards.
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BLUE FUEL
In addition to being an energy source, natural gas can also serve
as a basis for the chemical and petrochemical industry. It can
be used for production of synthesis gas and various chemical
compounds, which in turn can be used for the production of
methanol, fertilisers, silicones, anesthetics and many other
products. Natural gas will also enable these countries to develop
production of other gas-based products.
Moreover, TurkStream will enable the use of natural gas in
the so-called total energy system which gains importance
for industry and public consumption, satisfying diverse year-
round energy needs: power, technical needs, heating, air
conditioning, cooling, water heating etc. Natural gas has already
been introduced in hospitals, sport halls, hotels and industrial
facilities, where it is used for all the aforementioned needs.
Compared to Western European countries, South Eastern
European countries started gasification of their industry and
public consumption relatively late. The use of natural gas in
households in these countries is very limited, and it must be
substantially increased.
I maintain that the proposals for supplying these countries by
alternative suppliers, as some have been suggesting lately, are
not realistic, as objectively speaking, the market has no available
gas for these countries. Azerbaijani gas, frequently mentioned
lately, is already allocated for the BP-built TAP pipeline, and
there will be no other options in the foreseeable future. All
other mentioned possibilities for diversification of gas systems
in South Eastern Europe away from Russia are unrealistic
speculations. Firstly, there will be no such gas in the foreseeable
future, and secondly, any other natural gas, like LNG, would be
considerably more expensive than Russian gas. Import of US
shale gas is an especially unrealistic possibility.
It appears therefore that TurkStream emerges as the unique
solution for the development of the energy market of these
countries and for meeting their energy needs.
South Eastern European countries must continue importing
natural gas in order to satisfy their needs. If it gets constructed,
the TurkStream pipeline will provide them with an opportunity
to develop their energy market and economy in the long-term
while ensuring reliable energy supplies. At the same time, the
construction of TurkStream will enable these countries to create
employment surrounding the construction and maintenance
of the pipeline system and other facilities along the route, in
addition to the financial gain from transit fees.
11
Commemorating World War I
Gazprom Marketing & Trading France
attended the unveiling of a memorial
in honour of the officers and soldiers
of the Russian Expeditionary Force,
who fell in France during World War I.
The monument, erected in Courcy,
was sculpted by Russian sculptor,
Alexander Taratynov, with support
from Gazprom.
In April 2015, the statue by Alexander
Taratynov was unveiled in Courcy, near
Reims, Champagne-Ardenne, with the
Russian Minister of Culture, Vladimir
Medinsky, and the Russian Ambassador
to France, Alexander Orlov, in attendance.
The Russian dignitaries were welcomed
by the Mayor of Courcy, Mrs. Martine
Jolly, and city council members,
alongside members of the ‘Association
of Descendants of Russian soldiers
in France.’
The memorial commemorates members
of the two brigades of the Russian
Expeditionary Force who participated
in a large-scale offensive under the
command of General R. Nivelle. The
artist and sculptor Alexander Taratynov
took inspiration for the monument from a
photo from the First World War, showing
a Russian soldier holding a little girl in
one hand and a teddy bear in another.
12
On 16 April 1917, after a difficult and
bloody battle, the first special brigade,
led by General M.D. Nechvolodov,
managed to recapture Courcy from
German troops, who had occupied
the town for two years. Under intense
artillery fire, the Russian troops heroically
defended their positions for three days,
resulting in 700 Russian fatalities on
the battlefield. The liberation of Courcy
was one of the few victories of the Allied
Forces throughout the Nivelle offensive.
Mr. Medinsky noted at the ceremony
that “Russia and France were allies in the
two most terrifying wars in the history
of civilization; we keep the memory of
French pilots and we are grateful to
the French people for remembering
our soldiers.”
As part of the centenary of World War I,
this project is important for French-
Russian relations and marks the
significant contribution of Russia to the
victory over Germany in World War I.
The ceremony concluded with the singing
of both national anthems. The Russian
National Anthem was performed by
pupils of the Russian Embassy School
from Paris and local French school
children sang the “Marseillaise.”
June 2015/ Vol. 8/ Issue 3
Russian-German Academy Orchestra
Performs in St. Petersburg and Berlin
8 June 2015 saw Berlin’s Konzerthaus host a celebration of
a date close to the hearts of Germans and Russians – the
70th anniversary of the end of World War II. The Russian-
German Music Academy’s orchestra performed its debut
concert in Berlin to mark the occasion, just days after wowing
a traditionally tough audience at the Mariinsky Theatre in
St. Petersburg.
The ensemble brings together exceptional young talents from
Germany and Russia – promising musicians and students of
renowned music schools and academies. Led by star conductor
Valery Gergiev and solo cellist Julian Steckel, the young
musicians presented a German-Russian programme of works
by Jörg Widmann, Robert Schumann, and Nikolai Rimsky-
Korsakov.
The theme of the two concerts in St. Petersburg and Berlin
stretched beyond remembrance to focus on the two countries’
common future. Indeed, regular exchange between German
and Russian musicians is a priority for the Russian-German
Music Academy, which offers joint rehearsals, workshops, and
Russian-German Music Academy with Valery Gergiev
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performances. With Valery Gergiev, the music academy has
found an artistic director who has long been committed to
promoting up-and-coming talent and who feels as strongly
about German music as he does about Russian music.
The project was launched by young Germans and Russians
during the Russian-German Year of Culture 2012/2013 who
were brought together by music and felt connected to a cultural
tradition uniting the two nations. The Russian-German Music
Academy performed its highly successful debut at the 2014
Festival of White Nights at the renowned Mariinsky Theatre in
St. Petersburg. Such collaboration and performances at the
prestigious stages were made possible thanks to a sponsorship
by the Gazprom Group.
GAZPROM Germania is the main sponsor of the Russian-
Germany Music Academy. With its sponsorship, the company is
supporting cultural exchange between Russia and Germany in
the interest of nurturing mutual understanding.
13
Gazprom & FC Schalke 04: Partners
Through Thick and Thin
Gazprom’s
sponsorship of
the German
Bundesliga
football club FC
Schalke 04 goes
far beyond the
usual kit and on-pitch
advertising. It also includes
an array of activities designed to raise
public awareness of natural gas and
how Gazprom provides a stable supply
of this key resource.
At the start of the 2014/15 Bundesliga
season, Gazprom Germania kicked off a
campaign centred around a number of
its core business areas, such as using
natural gas to fuel vehicles. The effort has
already drawn significant interest from
football fans across Germany.
The Gazprom Buddy Card (Kumpelkarte)
campaign works as follows: Schalke
fans were invited to visit www.gazprom-
football.com/kumpelkarte to take part
in the Gazprom Super Buddy Quiz.
The entrant who managed to answer
10 head-scratching questions about
FC Schalke 04, Gazprom, and natural
gas in the shortest amount of time was
declared the contest’s first winner. The
winner’s prize was the Gazprom Buddy
Card, an exclusive card that grants him
and a friend entry to all of Schalke’s
matches. For the club’s international
away matches in the UEFA Champions
League, it was also good for a VIP travel
package. Among other amenities, this
included seats on the team plane and
accommodation at the team hotel.
The buddy card holder was, however,
required to take on two other challengers
at regular intervals to defend his elite
status. During these additional rounds of
the competition, the participants had the
help of Schalke stars from seasons past,
which gave them a true sense of the close
ties between club and sponsor.
14
In focus: the advantages of Russian
natural gas
As the contest went on, it incorporated
connections to subjects involving natural
gas. Under the theme “Natural Gas at
Schalke”, all of the entrants were in the
first round chauffeured by the Gazprom
Buddy Taxi – a car fuelled by natural gas
and driven by Schalke stadium announcer
Dirk Oberschulte-Beckmann. The owner
of the buddy card also had the chance to
get behind the wheel, of course. To retain
this highly sought after prize (or claim it
as their own), the entrants were required
to put their knowledge of natural gas to
the test.
Media hails fan-focused campaigns
The emotional connection among the
club, its fans, and its main sponsor
served to bolster the positive association
between Gazprom and its primary
product. The contest also proved to be a
fun and exciting way to improve people’s
knowledge of natural gas. Finally, this
approach underscored the benefits
of having a reliable sponsor close at
hand: Instead of just putting its name on
Schalke shirts, Gazprom wants to be a
partner to the club’s fans by keeping up
with their aspirations and giving them
access to once-in-a-lifetime experiences.
All of this has made the German media
take notice as well. The renowned
business newspaper Handelsblatt, for
example, published an article about
sponsorships that described the Gazprom
Buddy Card as a perfect example of how
to engage people in a fan-conscious
manner. This shows how Schalke’s effort
to design its sponsored activities with
its fans in mind reflects positively on
Gazprom and natural gas in general.
The response to the Gazprom Buddy
Card has also ensured its continuation
next season.
Continues on page 15
June 2015/ Vol. 8/ Issue 3
In addition, Gazprom Germania has worked with FC Schalke
04 on initiating numerous social projects that also focus on
fans. Since the beginning of the current season, the company
has supported the club’s foundation – “Schalke hilft” (“Schalke
Helps”), which is dedicated to projects that serve the public
good in the Ruhr region of Western Germany – through the
initiative “Weil Du es verdient hast” (“Because You’ve Earned It”).
A key platform for dialogue among opinion leaders
Meanwhile, Gazprom Germania also uses sponsorships as
a means of bringing together leading decision-makers and
experts from the realms of science, business, and politics. One
such event is the Energy Meeting Schalke began hosting two
years ago, featuring a dialogue format and presentations on
political and business-related subjects in the energy industry.
The speakers invited typically provide an overview of the current
debate on energy policy. In the run-up to Schalke’s final home
match of the season against SC Paderborn, Gazprom Germania
held the fifth edition of this event under the theme “The Energy
Transition: Blessing or Curse?”
How can Germany succeed in its transition to alternative sources
of energy? What role will natural gas play in the energy mix of
the future? Answers to these and other questions were provided
by 25 representatives from the business sector (including STEAG
AG, E.ON AG, and Thyssengas GmbH), the scientific community
(the Wuppertal Institute, IASS Potsdam, and other entities),
and the political arena (energy policy spokespersons from the
CDU, SPD, and FDP). Gazprom Germania spokesman Mirco
Hillmann welcomed in Dr. Patrick Matschoss (Transdisciplinary
Panel on Energy Change, IASS Potsdam), Dr. Axel Botzenhardt
(Thyssengas), Peter Meyer (erdgas mobil), and Timo Vehrs
(Gazprom Germania) to give presentations on these topics.
Those in attendance agreed that natural gas can and should play
a key part in the energy transition. Meanwhile, Dr. Botzenhardt,
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managing director of the natural gas grid operator Thyssengas,
called for improved integration of Russian natural gas suppliers
into the European market. “We need to do an even better job of
incorporating our Russian partners into the European market,”
he asserted, describing this effort as vital in light of the decline
in natural gas production in Germany, Great Britain, and the
Netherlands.
Timo Vehrs, Director of Business Development at Gazprom
Germania, added to Botzenhardt’s comments: “Gazprom is
capable of providing a secure supply of natural gas,” he stated
before underscoring the resource’s efficiency and environmental
compatibility. Whether for generating electricity and heat or
fueling vehicles, Vehrs described natural gas as suitable for
a variety of purposes. Clemens Tönnies, supervisory board
chairman at FC Schalke 04, echoed this sentiment in describing
how the energy transition is affecting the competitiveness of his
food production company, Tönnies Fleischwerk. “We’re relying
on decentralized, gas-powered combined heat and power
plants and have liked what we’ve seen so far,” Tönnies affirmed.
“Natural gas is clean, efficient, and suitable for a variety of uses.”
Dependable partners for eight years – and counting
In addition to its energy summits at Schalke, Gazprom Germania
regularly organizes press conferences, receptions, and other
events designed to highlight the benefits of Russian natural gas.
To help kick off the second half of the Bundesliga season, for
instance, the company invited some 120 thought leaders to a
gathering it dubbed “a New Year’s reception in royal blue” – a
nod to Schalke’s colour of choice. Among the attendees were
members of the federal association of German press officers
(BdP) and the business association Deutsch-Russischer
Wirtschaftsclub (DRW), who gained extensive insights into
the press and sponsorship activities of the world’s leading
producer of natural gas. Here, Burkhard Woelki, Director of
Corporate Communications at Gazprom Germania, emphasized
Continues on page 16
15
the special partnership the company
has with Schalke. “Our sponsorship
goes far beyond the typical business
arrangement; it’s based on a foundation
of friendship and trust among all those
involved,” he declared. In his subsequent
speech, Alexander Jobst – Director of
Marketing at FC Schalke 04 – spoke of
a “vibrant partnership in its eighth year”
while citing the many social projects the
two sides have seen through together.
“Over the years, Gazprom has always
proven to be a partner we can count
on,” he stated. Clemens Tönnies was
also on hand with a statement for the
media representatives in attendance:
“Our partnership with Gazprom has been
marked by trust and excellence since
2007,” he asserted. “I can assure you that
they’ve been a loyal ally of ours and will
be for a long time to come – just as we’ll
be to them.” Following these speeches,
the guests were treated to an engaging
entertainment programme. During a tour
of the VELTINS-Arena, Schalke press
spokesman Thomas Spiegel explained
how the club’s media department
operates, while an autograph session
with goalkeeper Ralf Fährmann and an
exclusive photo shoot in the Schalke
dugout rounded out the day.
“We had some exciting behind-the-
scenes looks into the work of Schalke
and its sponsor, Gazprom. It was really
worth the visit!” Markus Jablonski (BdP)
offered in summary. “The partnership
between Gazprom and Schalke is a great
example of efficient German-Russian
collaboration,” added Marianne S. van
Ooijen (DRW). The executives from
both partners could hardly have put it
better themselves.

SKA Wins 2015 Gagarin Cup

St. Petersburg-based ice hockey club number of tickets available. Those lucky
SKA, proudly sponsored by Gazprom ones watching live were not disappointed,
Export, has stormed to 2015 Gagarin Cup SKA showcased hockey games full of
glory. The final playoffs for the Gagarin fiery spirit and artistic grace.
Cup of the Kontinental Hockey League
(KHL) took place in the city of Kazan.
SKA defeated home-team Ak Bars 6-1,
securing the fourth decisive victory in the
playoff series.

This was the KHL’s seventh season and

for ice hockey clubs across Russia and
Europe to win the Gagarin Cup. 2015 was
the first year that SKA entered the final
and accomplished what they have strived
for. The long-time dream of the club’s
players and fans alike finally came true:
SKA won the long-awaited trophy!

The latest playoffs were one of the most

spectacular in the history of the KHL. In
the semi-final stages SKA was victorious
after perhaps, the most interesting seven
matches in the history of the League
against Moscow-based CSKA.

Gazprom Export staff actively supported

the club at the ice arenas, with the
number of people wishing to attend the
matches consistently exceeding the

16
June 2015/ Vol. 8/ Issue 3 BLUE FUEL
FC Chelsea Legend Ferreira
Coaches Kids in London
Chelsea Foundation. I hope the attendance continues to grow as
they were a really good group.

“It is so important for football to give back to the community

so I am delighted that Chelsea’s partner Gazprom is positively
impacting young people by providing more opportunities for
them to engage with sport and social activity.”

Launched in September 2013, the Chelsea Foundation’s Premier

League Kicks project continues to thrive, promoting universal
sports engagement within disadvantaged areas and with at
risk individuals.

Away from the pitch more than 200 youngsters have been
helped to further education while the Premier League Kicks
coaches also assist youngsters with their Duke of Edinburgh
awards, and six former Kicks participants are now working
within the Chelsea Foundation as coaches.

Gazprom is very pleased to be supporting the Chelsea

On 17 April 2015, Paulo Ferreira — former Chelsea FC defender
— joined more than 50 children to launch Gazprom’s new
community partnership with London-based football club
Chelsea FC. Gazprom, the Official Energy Partner for Chelsea, is
extending its commitment to the club and the local community
by funding two extra nights of the Chelsea Foundation Premier
League ‘Kicks’ programme each week.
Foundation Premier League Kicks Programme. It is vital for local
communities to be engaged in sports and to experience playing
football with professional coaches is an incredible opportunity.
Kicks’ approach to develop both sporting and personal skills of
youngsters is hugely valuable.

Kicks is a nationwide programme aimed at engaging young

people and bringing communities together through football with
the Chelsea Foundation currently offering 13 sessions a week, in
five London boroughs, which equates to more than 30 hours of
free football.

Club legend Ferreira, who retired at the end of the 2012/13

season, was on hand to coach some of the young players and
share his valuable knowledge gained during a trophy-laden spell
at Stamford Bridge which included three Premier League titles.

After his coaching session, Ferreira insisted that community

outreach and engagement is a vital part of the club and its
partners’ roles in football.

He said: “It is fantastic for these young people to have

something to do in the evenings with these sessions of the
Premier League Kicks programme organised and run by the

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